Simon Clark and Orr Hirschauge were the first to report that British private-equity firm Permira sees 888 Holdings PLC, the online gaming company, as a potential target and may consider a bid for the company, according to sources. Two of these people said Permira is actively looking at 888, though any interest is preliminary.

LONDON – A new licensing and tax regime for online gaming in the U.K. is clearing the air around the sector, and making one of the industry’s biggest players, 888 Holdings PLC, a potential buyout target.

British private-equity firm Permira sees the online gaming company as a potential target and may consider a bid itself, according to people familiar with the situation. Two of these people said Permira is actively looking at 888, though any interest is preliminary.

Next month, new online-gambling licensing and tax regulations come into force that require any firm aiming to transact with, or advertise to, British consumers to obtain an operating license from the U.K.’s gambling commission. The new rules will also mandate a 15% tax on profits made by companies on bets by U.K. consumers.

While the move adds to the industry’s tax and regulatory burden, it also clears up some of the investor uncertainty that has long hovered over the sector. 888 is based in Gibraltar, but would still fall under the new rules.

That could help in the valuation process for potential buyers, according to industry experts. 888 is listed on the London Stock Exchange, and has a market capitalization of about GBP450 million ($748 million).

888.com offers online poker, casino and bingo games. The company has an Israeli research and development center and marketing offices in Gibraltar, London and Rome.

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